Income Statement of Lynette's Laundry for the month ended 31 August 20.1

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ScanSolve AI Tutor · Accepted Answer

Here is the completed Income Statement:

Income Statement of Lynette's Laundry for the month ended 31 August 20.1

Calculate Total Income.
$\text{Total Income} = \text{Current income} + \text{Interest received}$ $\text{Total Income} = \text{R}17\,000 + \text{R}500 = \text{R}17\,500$
Calculate Total Expenses.
$\text{Total Expenses} = \text{Wages} + \text{Materials} + \text{Advertising} + \text{Stationery}$ $\text{Total Expenses} = \text{R}7\,500 + \text{R}7\,800 + \text{R}900 + \text{R}2\,100 = \text{R}18\,300$
Calculate Profit/(loss) for the month.
$\text{Profit/(loss)} = \text{Total Income} - \text{Total Expenses}$ $\text{Profit/(loss)} = \text{R}17\,500 - \text{R}18\,300 = \boxed{\text{R}-800}$
Since the result is negative, it represents a loss of R800.

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